ASSESSING COMPLIANCE OF FOREST TIMBER PRODUCT UTILIZATION AND TRADE PERMIT HOLDERS

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CONTENT

SUMMARY

Summary

1

Introduction

2

Independent Monitoring

2

Noncompliance and Law Enforcement of Forest Product Utilization Permit Holders and Timber Industries in 8 Provinces

7

Gaps between Certification Body’s Assessment/ Verification Results and Monitoring Results

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Recommendations

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The main threat to the sustainability of Indonesia’s forests is forest area conversion leading to deforestation and forest degradation. One of the measures taken by the Government of Indonesia to improve forest governance is through the Timber Legality Assurance System (System Verifikasi Legalitas Kayu, SVLK). The SVLK is a mandatory system for all forestry unit managements stipulated in Regulation of Minister of Environment and Forestry No. P.30/Menlhk/Setjen/ PHPL.3/3/2016 that ensures the legality and sustainability of timber and timber product utilization, and ensuring they are sourced from legal raw materials. As of June 2018, more than 23 million ha of production forests and 4.322 timber product industries and traders have obtained the Sustainable Production Forest Management (S-PHPL) and Timber Legality (S-LK) certificates. Independent Monitors play a critical role ensuring SVLK is implemented in a credible and accountable manner. However, Independent Monitors still face a number of challenges in undertaking their roles; such as difficulties in accessing data and information, particularly timber distribution data, as well as gaps in reaching monitoring ‘space and scope’ and ensuring monitoring continuity. From October 2019 to June 2020, JPIK carried out a series of analysis on the supply chain of primary industry raw materials and field monitoring in Aceh, Riau, Bengkulu, South Sumatera, Banten, East Java, North Kalimantan, and West Kalimantan Provinces. In general, JPIK found that illegal logging practices are still happening in several regions. In addition, there are numerous suspected law enforcement violations by S-LK holders, as well as non-certified companies.

August 2020 © Independent Forest Monitoring Network/JPIK DISCLAIMER This report was produced with the support of FAO-EU FLEGT Programme. The Programme is funded by the Swedish International Cooperation Agency, the United Kingdom Department for International Development and the European Union. The views expressed herein can in no way be taken to reflect the official opinion of FAO, the Swedish International Cooperation Agency, the United Kingdom Department for International Development or the European Union.

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On the upstream end, illegal logs without V-Legal logos are easily transported by land or water. There is suspected failure to pay PNBP (non-tax state revenue) by IPK (timber utilization) permit holders, by harvesting timber for palm oil plantation land clearing. There must be more revelations of suspected cooperation between illegal loggers and government officials to minimize state losses for loss of environmental (ecosystem) carrying capacity, forest resources, and protected wildlife habitats. In addition, conflicts between forest utilization permit holders and local/indigenous communities were often recorded in S-PHPL concessions. On the downstream end, S-LK certified forestry product exporters have been found using timber products from uncertified companies, and therefore their legality is questionable. Some individual permit holders do not mention


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